GMAC Mortgage, in the wake of a lawsuit filed by the Massachusetts Attorney General against GMAC and four other banks for deceptive foreclosure practices, fraudulent documentation, deceptive handling of loan modifications, and failure to record mortgage assignments on registered land, has announced that it is exiting the mortgage business in Massachusetts.

The company's press release follows:

GMAC Mortgage, the mortgage origination and servicing operation of Ally Financial Inc., today announced that it will cease purchasing new mortgage loans in the Commonwealth of Massachusetts that are originated by correspondent lenders and wholesale brokers.  The company will honor all commitments with these lenders as of Dec. 5, 2011.

GMAC Mortgage has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable.  The company will continue to service its existing customers and honor its contractual obligations as a servicer.

The company is disappointed that it can no longer participate in offering certain financing options in Massachusetts; however, it has an obligation to manage risks and deploy capital in an appropriate manner and in a way that protects the investment of the U.S. taxpayer.

GMAC Mortgage continues to be a leader in home ownership preservation efforts and has completed 745,000 borrower workouts since 2008, representing 27 percent of the loans serviced.